Oil Sector

The Organisation of the Petroleum Exporting Countries (OPEC) has announced a 0.033 million barrels per day increase in Nigeria’s oil production quota for the month of July.

Driving the news 
OPEC made this announcement on Thursday after a meeting between the OPEC and non-OPEC Ministerial. It raised Nigeria’s oil production quota from 1.766 million barrels a day in June to 1.799 million barrels in July. 

What OPEC is saying
OPEC said via a videoconference that they increased the total monthly oil production by 648,000bpd for the seventh month of the year, July, with a target production of 43.206mbpd.

  • It also added that “OPEC noted the most recent reopening from lockdowns in major global economic centres. It further noted that global refinery intake is expected to increase after seasonal maintenance.”
  • OPEC also requested underperforming member countries to present a plan by June 17 while extending the compensation period for these countries to the end of the year. 

What you should know 

  • A Reuter survey released in May stated that Nigeria’s oil production increased by 70,000 barrels per day, averaging 1.42 million bpd. 
  • According to the survey, OPEC’s May output for the first time since February, exceeded a new rise plan following a deal with allies. 
  • Saudi and Iraqi also in May increased their supply combined alongside an outage-hit Nigeria as the countries show partial recovery. 
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